Reps Approve Tinubu’s Request To Borrow $516m For Sokoto-Badagry Highway

The House of Representatives has approved a request by President Bola Tinubu to secure a $516.3 million foreign loan for parts of the Sokoto–Badagry superhighway project.

The approval came during Tuesday’s plenary after Abdullahi Rasheed, deputy chairman of the committee on aids, loans, and debt management, presented the panel’s report.

The lawmakers moved quickly, taking the request from its reading to final approval within a short time.

The speaker of the house, Tajudeen Abbas read the president’s letter on the floor, after which the report was reviewed at the committee of supply before it was passed.

The House directed the ministry of finance, the Debt Management Office, and the ministry of works to provide quarterly updates on how the funds are used and how the project is progressing.

In his letter, Tinubu explained that the loan would be obtained through a syndicated financing arrangement led by Deutsche Bank.

The funds will be used for sections 1, 1A, and 1B of the highway, covering about 120 kilometres.

The president described the Sokoto–Badagry superhighway as a major project under his administration’s development plan, aimed at connecting key economic areas across the country.

The road, expected to span roughly 1,000 kilometres, will link several states, including Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, running from Illela to Badagry.

The financing plan also includes support from Islamic Corporation for the Insurance of Investment and Export Credit, which will provide a partial risk guarantee.

Meanwhile, the federal government is expected to contribute over N265 billion to handle land acquisition, compensation, and related infrastructure.

Tinubu noted that the loan will run for nine years, with a grace period of up to three years, and an interest rate tied to the CME SOFR plus 5.3 percent annually.

According to him, the project is expected to ease movement along the corridor, cut transport costs and travel time, boost trade, support food supply, and strengthen connections between different parts of the country. It is also designed to allow for future rail links and utility infrastructure.

ALSO READ: Tinubu Seeks Senate Approval For $516m Loan To Fund Sokoto–Badagry Highway